Annuities

The answer depends on the type of annuity. If the annuity is a fixed period annuity or an annuity which pays a fixed amount during the lifetime of one or more persons, the value of the annuity will decrease if interest rates rise and will increase if interest rates fall. For example, san an annuity is paying $100 per month for 3 years and the interest rate is 5%. The value of the annuity is $100 x ( (1+5%)^(-1/12) + (1+5%)^(-2/12) + ... + (1+5%)^(-36/12) ) = $3,342.13. If the interest rate rises to 6%, the value of the annuity falls to $100 x ( (1+6%)^(-1/12) + (1+6%)^(-2/12) + ... + (1+6%)^(-36/12) ) = $3,294.90.

100% Safe.

Three words: Bank it fast.

Yes

No, not at all.

There is life insurance. There are annuities. Life insurance companies sell annuities, but annuities are not life insurance policies. The answer depends on which one is under discussion. There is no income tax on payouts from life insurance policies. Annuities are purchased. The purchase price forms the owner's (or beneficiary's) basis in the contract; that is, the part that will not be taxed. The remainder of the payout is earnings (interest, usually) that have never been taxed, so are taxable to the recipient. How much tax would be due depends on how much of the $45,000 is taxable earnings, as well as how much other income the recipient receives in the year of the payout.

Usually it is backed by the financial strength of the issuing insuance company.

Answer 2

But more usually government bonds are bought to cover the payments to be made by the insurer. This guarantees (as far as one can guarantee anything) that the annuity payments are safe. The financial strength of the insurer is a very vague measurement - who'd have thought that an insurer like AIG (massive financial strength?) would go under.

A rollover occurs when you withdraw from one retirement plan and transfer all or part of that amount, within 60 days, to another retirement plan. You will receive Form 1099-R (Distributions from Pensions, Annuities, etc.) from the holder of your IRA account.

Refer to Form 1099-R in filling out your tax return. On Form 1040, you enter the rollover amount on line 15a (IRA distributions). Next to 15b write Rollover. If the total amount of the IRA was rolled over into the annuity, then enter 0 on line 15b.

For more information, go to www.irs.gov/taxtopics. Select Topic 413 (Rollovers from Retirement Plans). Also, go to www.irs.gov/formspubs. Select Publication Number. Type 575 in the Find box to read/print Publication 575 (Pension and Annuity Income). Type 590 in the Find box to view Publication 590 (Individual Retirement Arrangements).

O.K. First of all, you need to know that I = P X R X T...Interest equals principal times rate times time. I = 20000 X .07 X 1 ++++++++++++++++ I =12000 X .075 X 1 (That's 7% above and 1 is for 1 year, see?) I = $1,400 I = $900 Now, add the two numbers above, 1400 + 900 = $2,300. That's it, easy huh?

which may be defined as a series of consecutive payments or receipts of equal amount.

1. annuity is paid till a person passes away whereas life insurance is paid after a person passes away to the beneficiaries

2. annuity is paid as periodic installments whereas life insurance is paid as lump-sum.

3. annuity support future income requirement. life insurance support the need of beneficiaries.

4. annuity is a retirement planning tool whereas life insurance is a product providing inheritance.

5. annuity pays back total value + gains earned. life insurance may provide benefit multiple times larger than premium paid

ZEBA

Yes. A pure endowment is a one-payment annuity.

300*[(1+0,07)(1+0,07)(1+0,07)(1+0,07)(1+0,07)-1]/0,07

Yes an annuity is a life insurance product. Its kind of like the opposite of life insurance.

With eleven x 10k payments, the first one beginning today, and a final lump sum of 200k at end year 11 the Present Value (PV) is $188,958.38 This PV of the 11 payments of 10k is $83,600.87 The PV od the 200k is $105,357.51

It was based in London England in the early seventies.

With a properly named beneficiary, the death proceeds of an annuity are outside of the estate and transfer directly to the heirs avoiding probate.

No. It is exempt from judgements.

1. Number 1 who ever spelt does is stupid you spelt it wrong and number 2 tactic means a instructions or something you think about something that you know that will work in sports like passing the ball overarm when somebody is not watching you..

No, in Australia, America and most of Europe there are certain taxes that affect inherited annuities.

200,000

death

They are not insured like with money in the bank and the FDIC. But it is safe as to the extent that the insurance company is safe and at this point probably safer than the banks and the FDIC! I strongly advise against indexed annuities at this point where you can receive 0% interest. Why not a fixed annuity that would guarantee the interest rate for a fixed period of time? Currently 6% guaranteed for 10 years.

Electronic Funds Transfers

Try again- ETF, not EFT

Exchange Traded Fund

depreciation is a non cash item which have no physical outflow ... when depreciation is applied on tax cash flow it saves tax resulting in decrease in cash outflow